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I'm with I4E here. These are your neighbours. Weigh carefully your options here as you need to live with these folks.
Discount the fact that they were "mean" when this first happened. Keep in mind that they also just lost a beloved pet just like you did.
And for the folks who are all about the dog got what he deserved, etc, please remember that he was an animla doing what he was born to do. He has no idea he is killing someone else's beloved pets...he's jsut being a dog.
I'm sorry for your loss and I fully understand the anger you are feeling but suing an otherwise (?) good neighbor for "emotional distress" is just plain vengeful and does nothing to bring back you chickens.
My $0.02.....
Hang on here you two. I was under the impression that this particular dog being on the loose was a very rare occurrence. I do not blame the dog, and honestly if the owners have been this good at keeping such a strong animal well contained for the vast majority of the time I don't put much blame on them either. I also do not believe that this is the fault of lickskillet or her family. In my mind, this appears to be a complete accident that ended badly for both sides.
That said, I still think she should pursue restitution. When you are in a car crash and it was a total accident that neither party could avoid, you both still have to determine who was mostly at fault and they should pay for the damages and from this situation the law would side against the dog owners. Perhaps in the vein of neighborliness, you could ask them what they would consider a fair restitution for the dog's life and you could come up with one for your chickens. You will both have original purchase price, feed, vet care, housing, and emotional damages in making up such a list. Then compare and hopefully you guys could work out a fair monetary amount.
If they refuse to even be cordial with you or your family, then proceed through other ways, i.e. the police, civil court, etc. You don't have to offer them anything, but if you try this method it might help save your relationship. Still, I say don't let it slide. You guys can call me heartless or any other name in the book, but to me I'm being realistic about the way the world works and I won't let anyone and their mistakes run amok on my life with things I care about.